Key facts
- The EU runs a daily goods trade deficit with China of 1 billion euros ($1.15 billion).
- European Commission President Ursula von der Leyen warned of a "second China shock."
- Von der Leyen pledged the EU would deploy "every available tool" to rebalance economic and trade ties with Beijing.
European Commission President Ursula von der Leyen highlighted a significant trade imbalance with China during her State of the Union address to the European Parliament on September 16, 2026. She stated that the European Union now faces a daily goods trade deficit with China amounting to 1 billion euros ($1.15 billion). Von der Leyen expressed concern about the potential for a "second China shock," which could exert deindustrialization pressures on the EU economy. In response, she pledged that the EU would utilize "every available tool" to address this imbalance and reconfigure its economic and trade relationship with Beijing.